PIRELLI & C SPA (PIRC.MI) Stock Fundamental Analysis
BIT:PIRC - Euronext Milan - IT0005278236 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to PIRC. PIRC was compared to 29 industry peers in the Automobile Components industry. PIRC has an excellent profitability rating, but there are some minor concerns on its financial health. PIRC has a decent growth rate and is not valued too expensively. PIRC also has an excellent dividend rating. With these ratings, PIRC could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
PIRC had positive earnings in the past year.
In the past year PIRC had a positive cash flow from operations.
PIRC had positive earnings in each of the past 5 years.
Each year in the past 5 years PIRC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PIRC (5.36%) is better than 93.10% of its industry peers.
Looking at the Return On Equity, with a value of 12.28%, PIRC belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
PIRC's Return On Invested Capital of 10.66% is amongst the best of the industry. PIRC outperforms 93.10% of its industry peers.
PIRC had an Average Return On Invested Capital over the past 3 years of 6.34%. This is in line with the industry average of 6.47%.
The 3 year average ROIC (6.34%) for PIRC is below the current ROIC(10.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.28% | ||
| ROIC | 10.66% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
1.3 Margins
PIRC's Profit Margin of 6.99% is amongst the best of the industry. PIRC outperforms 93.10% of its industry peers.
In the last couple of years the Profit Margin of PIRC has declined.
Looking at the Operating Margin, with a value of 13.48%, PIRC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PIRC's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 64.22%, PIRC belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
PIRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.48% | ||
| PM (TTM) | 6.99% | ||
| GM | 64.22% |
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PIRC is creating some value.
The number of shares outstanding for PIRC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, PIRC has about the same amount of shares outstanding.
The debt/assets ratio for PIRC has been reduced compared to a year ago.
2.2 Solvency
PIRC has an Altman-Z score of 2.14. This is not the best score and indicates that PIRC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of PIRC (2.14) is better than 72.41% of its industry peers.
PIRC has a debt to FCF ratio of 4.23. This is a neutral value as PIRC would need 4.23 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.23, PIRC belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
PIRC has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
PIRC's Debt to Equity ratio of 0.47 is fine compared to the rest of the industry. PIRC outperforms 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.23 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.67
WACC6.4%
2.3 Liquidity
PIRC has a Current Ratio of 1.23. This is a normal value and indicates that PIRC is financially healthy and should not expect problems in meeting its short term obligations.
PIRC has a Current ratio of 1.23. This is comparable to the rest of the industry: PIRC outperforms 51.72% of its industry peers.
A Quick Ratio of 0.77 indicates that PIRC may have some problems paying its short term obligations.
With a Quick ratio value of 0.77, PIRC is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
PIRC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.02%.
The Earnings Per Share has been growing slightly by 1.33% on average over the past years.
The Revenue has been growing slightly by 1.99% in the past year.
The Revenue has been growing slightly by 4.94% on average over the past years.
EPS 1Y (TTM)7.02%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%25%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%3.72%
3.2 Future
PIRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.36% yearly.
Based on estimates for the next years, PIRC will show a small growth in Revenue. The Revenue will grow by 2.11% on average per year.
EPS Next Y3.63%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue Next Year1.43%
Revenue Next 2Y2.06%
Revenue Next 3Y2.51%
Revenue Next 5Y2.11%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.46, the valuation of PIRC can be described as very reasonable.
Based on the Price/Earnings ratio, PIRC is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
PIRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.99.
A Price/Forward Earnings ratio of 8.36 indicates a reasonable valuation of PIRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PIRC is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PIRC to the average of the S&P500 Index (36.36), we can say PIRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 8.36 |
4.2 Price Multiples
PIRC's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PIRC is valued a bit cheaper than 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.38 | ||
| EV/EBITDA | 4.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of PIRC may justify a higher PE ratio.
PEG (NY)2.61
PEG (5Y)7.12
EPS Next 2Y9.11%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.22%, PIRC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.04, PIRC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, PIRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
5.2 History
The dividend of PIRC has a limited annual growth rate of 2.92%.
Dividend Growth(5Y)2.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
28.30% of the earnings are spent on dividend by PIRC. This is a low number and sustainable payout ratio.
PIRC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.3%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
BIT:PIRC (8/7/2025, 5:35:15 PM)
5.77
+0.03 (+0.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners13.77%
Inst Owner ChangeN/A
Ins Owners27.72%
Ins Owner ChangeN/A
Market Cap5.77B
Analysts83
Price Target6.86 (18.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend0.2
Dividend Growth(5Y)2.92%
DP28.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.8%
Min EPS beat(2)-1.96%
Max EPS beat(2)0.36%
EPS beat(4)3
Avg EPS beat(4)11.46%
Min EPS beat(4)-1.96%
Max EPS beat(4)39.27%
EPS beat(8)7
Avg EPS beat(8)19.38%
EPS beat(12)11
Avg EPS beat(12)25.48%
EPS beat(16)14
Avg EPS beat(16)30.41%
Revenue beat(2)1
Avg Revenue beat(2)0.36%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)2.31%
Revenue beat(4)1
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)2.31%
Revenue beat(8)1
Avg Revenue beat(8)-0.8%
Revenue beat(12)5
Avg Revenue beat(12)17.85%
Revenue beat(16)9
Avg Revenue beat(16)27.3%
PT rev (1m)-0.25%
PT rev (3m)2.33%
EPS NQ rev (1m)-3.79%
EPS NQ rev (3m)-9.29%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.4%
Revenue NQ rev (3m)-3.3%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 8.36 | ||
| P/S | 0.56 | ||
| P/FCF | 6.38 | ||
| P/OCF | 4.38 | ||
| P/B | 0.99 | ||
| P/tB | 8.13 | ||
| EV/EBITDA | 4.29 |
EPS(TTM)0.61
EY10.57%
EPS(NY)0.69
Fwd EY11.97%
FCF(TTM)0.9
FCFY15.68%
OCF(TTM)1.32
OCFY22.82%
SpS10.27
BVpS5.84
TBVpS0.71
PEG (NY)2.61
PEG (5Y)7.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 12.28% | ||
| ROCE | 13.66% | ||
| ROIC | 10.66% | ||
| ROICexc | 11.83% | ||
| ROICexgc | 27.01% | ||
| OM | 13.48% | ||
| PM (TTM) | 6.99% | ||
| GM | 64.22% | ||
| FCFM | 8.81% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
ROICexc(3y)7.45%
ROICexc(5y)5.98%
ROICexgc(3y)18.21%
ROICexgc(5y)15.26%
ROCE(3y)8.22%
ROCE(5y)6.5%
ROICexcg growth 3Y6.83%
ROICexcg growth 5Y-0.05%
ROICexc growth 3Y13.56%
ROICexc growth 5Y3.32%
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.23 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 70.84% | ||
| Cap/Sales | 4.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.98% | ||
| Profit Quality | 126.07% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.14 |
F-Score6
WACC6.4%
ROIC/WACC1.67
Cap/Depr(3y)65.74%
Cap/Depr(5y)60.49%
Cap/Sales(3y)5.68%
Cap/Sales(5y)5.68%
Profit Quality(3y)193.7%
Profit Quality(5y)400.33%
High Growth Momentum
Growth
EPS 1Y (TTM)7.02%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%25%
EPS Next Y3.63%
EPS Next 2Y9.11%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue 1Y (TTM)1.99%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%3.72%
Revenue Next Year1.43%
Revenue Next 2Y2.06%
Revenue Next 3Y2.51%
Revenue Next 5Y2.11%
EBIT growth 1Y7.11%
EBIT growth 3Y15.49%
EBIT growth 5Y3.46%
EBIT Next Year54.41%
EBIT Next 3Y18.84%
EBIT Next 5Y10.63%
FCF growth 1Y12.96%
FCF growth 3Y12.02%
FCF growth 5Y7.38%
OCF growth 1Y12.62%
OCF growth 3Y12.04%
OCF growth 5Y4.79%